Are Full Frame SLRs Obsolete?

And most consumers don't care. Snapshots are just enough so cams like Kodak Disk were very popular with even smaller frame size. Like the cellphone cams with the matchhead sized sensors now.

You're right. Cell phones all have cameras now, some of them even take good pictures. And yet people are still buying dedicated cameras. The SLR and P&S market both should be obsolete if the OP is correct.